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NOTE: Dinar Recaps posts this for informational purposes only.
Everyone should seek their own legal and/or tax professionals advice.
Below is from a quick search , and really needs to addressed by each individual , do not make a move based on what someone on these forums tell you . Make sure you know for yourself . Based on this , the above stated is not true , and it is considered a capital gains tax and is taxable over 200.00 dollars . You should not trust information you heard , you should only provide information that is researched and backed up .
The income from currency exchange is your taxable income and is reported as capital gain - long or short term depending how long you held the foreign currency - more or less than a year.
the below quote is directly from IRS Publication 525, page 30
Foreign currency transactions. If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.
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If you have a gain on a personal foreign currency transaction because of changes in exchange rates, you do not have to include that gain in your income unless it is more than $200. If the gain is more than $200, report it as a capital gain.
The purchase of the foreign currency is not taxable transaction.
The sale transaction is reported on the schedule D -
If you held the foreign currency more than a year - the gain will be taxed at reduced rate - not more than 15%.
If you held the currency less than a year - the gain will be taxed at your regular tax rate.
State taxes are extra.
If I bought a foreign currency at a low rate then exchanged - JustAnswer http://www.justanswer.com/tax/2tzwy-bought-foreign-currency-low-rate-exchanged.html#ixzz2Msu6YdoL
(Thank you RC for also emailing Dinar Recaps the above information)
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